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Vertical specialization across the world: A relative measure

João Amador () and Sonia Cabral ()

The North American Journal of Economics and Finance, 2009, vol. 20, issue 3, 267-280

Abstract: This article investigates the dynamics and the international distribution of vertical specialization (VS) - the use of imported inputs to produce goods that are afterwards exported. We propose a relative measure of VS-based trade that combines information from Input-Output matrices and international trade data, producing results for a large sample of countries with a detailed product breakdown. We illustrate this measure by showing the evolution of VS activities at the world level over the 1967-2005 period. The results are consistent with partial evidence existing in the literature, pointing to a substantial increase of VS in high-technology products and in East Asia.

Keywords: International; fragmentation; of; production; Vertical; specialization (search for similar items in EconPapers)
Date: 2009
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Working Paper: Vertical Specialization Across the World: A Relative Measure (2008) Downloads
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Handle: RePEc:eee:ecofin:v:20:y:2009:i:3:p:267-280